Bank of America gets needed consents from preferred hybrid holders

By Jennifer Chiou

New York, Dec. 8 - Bank of America Corp. announced the successful wrap of its consent solicitation for BAC Capital Trust XIII's $700 million of floating-rate preferred hybrid income term securities and BAC Capital Trust XIV's $850 million of 5.63% fixed-to-floating preferred hybrid income term securities.

The Charlotte, N.C.-based bank received enough consents to amend the declaration of trust governing the securities to permit the cancellation of any of the preferreds acquired by it in exchange for the receipt of a like amount of the underlying junior subordinated debt and stock purchase contracts. These would then be presented to the trustee for cancellation.

Bank of America will pay a consent payment of $2.50 for each $1,000 liquidation amount of preferreds.

The company was looking for consents from holders of at least a majority of each series, and the solicitation for one series of hybrids was not conditioned on the success of the other.

The solicitation expired at 5 p.m. ET on Dec. 7.

D.F. King & Co., Inc. was the information agent and tabulation agent (800 549-6746 or call collect 212 269-5550; bofa@dfking.com). Bank of America Merrill Lynch was the solicitation agent (888 292-0070 or 980 388-3646).

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